Technically Speaking

Weekly Analysis: Livestock Markets

Live Cattle: The August contract closed $0.825 lower at $167.65. The secondary (intermediate-term) trend remains down. However the contract was able to rally off its test of support near $146.20, a price that marks the 50% retracement level of the previous uptrend from $137.975 through the high of $154.40. Weekly stochastics are still bearish meaning the contract could push through this support to test the 67% retracement level near $144.25.

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Feeder Cattle: The August contract closed $3.95 higher at $215.20 last week. The contract posted an inside range, meaning it stayed within the previous week's trading range from $218.85 to $210.60, keeping the secondary (intermediate-term) trend down. Weekly stochastics remain bearish indicating the contract could eventually test support near $207.05, a price that marks the 67% retracement level of the previous uptrend from $196.675 through the high of $227.80.

Lean hogs: The August contract closed $2.025 higher at $75.6775 last week. Hog futures remain volatile, continuing to give no clear trend signals. The August contract moved to a new low of $70.650 before rallying, all while weekly stochastics are neutral.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.86, down 14 cents for the week. The secondary (intermediate-term) trend looks to have turned sideways after the NCI.X posted a possible bearish reversal last week. Its early high of $4.06 was a test of resistance at $4.08, the 61.8% retracement level of the previous downtrend from $4.86 through the low of $2.81. Minor (short-term) support is pegged between $3.80 and $3.68, prices that mark the 33% and 50% retracement levels of the previous rally from $3.29 through last week's high.

Soybean meal: The August contract closed $5.50 higher at $361.10. The secondary (intermediate-term) trend remains up. The contract moved to a new 4-week high of $372.10 last week on continued support from a bullish commercial outlook, indicated by the market's inverted forward curve. The major (long-term) price target is $428.20.

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